What are the risks involved with respect to Regular Saving Plans? Will the capital investment be lost?

The capital investment will not be lost if you put it in an insurance RSP for a fixed period of time. Insurance savings plans are typically put into a participating fund with an element of guaranteed and non-guaranteed returns comprising of majority bonds. The general idea is a very conservative growth that keeps up or just slightly beats inflation while preserving capital as well as other features such as a higher benefit in the event of untimely death and expedited payouts. You typically expect 2.5 - 4% net overall.

There are other RSPs, such as Cherie mentioned - especially commonly offered by POSB Invest-Saver for the STI or the ABF Bond Fund, which can have mixed returns as well ranging from 2 to about 7% depending on your risk profile.

Lastly, Robo RSPs also have a range of risk that you can choose from which will typically generate between 3 - 10% annualized.

The risk for robos is typically much higher, since the investments are made overseas and have more focus towards equities - so you add up things like currency risk. Of course, you also get a higher return.

In summary, no, they are not the same. Higher risk is higher return. But if you're looking at 'savings' in a conservative sense and not 'investing', then you should stick with conservative investments. If you want to invest aggressively, you can do much better than robos.

You can always drop me a PM if you'd like to start saving.

https://www.facebook.com/luke.ho.54.

Hi there! An RSP invests a fixed amount monthly into either Singapore blue-chip stocks or the Singapore Trade Index Exchange Traded Fund (STI ETF) on your behalf. Let's say your RSP invests into the STI ETF for you, you are indirectly invested in the stock of 30 top-performing companies in Singapore. In other words, your investment depends on the performance of all 30 companies, whether the companies do overperform or underperform and that in itself is a risk. So to answer to your question, yes there is a possibility that you might lose your capital. So it is very important to do your own due diligence when it comes to investing. There are many other products that cater to different risk appetites and it has been summarised pretty neatly here. - https://blog.seedly.sg/cheat-sheet-what-are-the... Do check this out!

Most importantly, you should believe in whatever you are investing. I wish you all the best! :)